Robinsons Land FY 2016 net income grows 7.9%

PROPERTY developer Robinsons Land Corporation (RLC) said its net income for fiscal year ending September 2016 rose 7.9 percent from the previous year, mainly driven by revenues from its mall business.

In an annual report to the Philippine Stock Exchange on Friday, RLC said its net income for fiscal 2016 increased to P6.15 billion from the P5.7 billion posted in the previous year.

Total operating revenues grew 14.2 percent to P22.51 billion in fiscal 2016 from P19.71 billion in the previous year.

RLC noted that its Commercial Centers Division accounted for bulk of the revenues or 44.2 percent as it registered revenues of P9.96 billion, a 9.4 percent increase from the P9.10 billion of the previous year.

“Rental revenues increased due to opening of new malls in Cebu City, Tagum (Davao), General Trias (Cavite) and Jaro (Iloilo). Also, the full year impact of Robinsons Place Antique and the expansion of Robinsons Novaliches, as well as the expansion of Robinsons Ilocos this year, contributed to the growth,” RLC said.

A large chunk of the revenues was also contributed by the company’s Residential Division, which accounted for 34.8 percent of the revenues at P7.83 billion, an 18.3 percent jump from the previous year’s P6.62 billion.

Meanwhile, revenues from the Office Buildings Division grew by 30 percent to P2.91 billion, and accounted for 12.9 percent of the company’s total revenues.

“Revenue growth was mainly attributable to the contribution from new office developments completed in 2014 and 2015, namely Cyberscape Alpha, Cyberscape Beta and Tera Tower,” the company said.

RLC said revenues from its Hotels Division grew by 3.5 percent to P1.81 billion, translating to an 8 percent contribution to total revenues. This increase principally came from relatively new hotels, namely Go Hotels Iloilo, Go Hotels Ortigas Center, Go Hotels Butuan, and Summit Hotels Magnolia, the company said.

Real estate sales for the year rose by 19 percent to P9.34 billion from P7.84 billion in the previous year, driven mainly by the opening of new malls and offices.

“General and administrative expenses went up by 11 percent to P3.40 billion due to higher taxes and licenses, salaries, insurance, donations, advertising and promotions and supplies expense, among others,” it said.

RLC is the real estate development arm of JG Summit Holdings Inc. As of end-September 2016, the company was operating a total of 44 shopping malls and had completed 79 residential condominium buildings/towers/housing projects as well as 13 office projects. It also owns 15 hotel properties in the country.